Math

A 20 year loan requires semi-annual payments of $1333.28 including interest at 10.75% compounded semi annually. what is the original amount of the loan and what will be the balance of the loan 8.5 years later (just after the scheduled payment?)

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  1. PV = 1333.28(1 - 1.05375^-40)/.05375
    = $21750.00

    Balance after 8.5 year
    = 21750.00(1.05375)^17 - 1333.28(1.05375^17 - 1/.05375
    = $17365.12

    check my arithmetic

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    posted by Reiny

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